GGRAsia – AGEM Index posts slight increase in June

AGEM Index posts slight increase in June

Jul 11, 2016 Newsdesk Industry Talk, Latest News, Top of the deck

The AGEM Index, which tracks the stock performance of the world’s major listed casino gaming equipment suppliers, posted a modest increase for the month of June. The composite index increased by 4.67 points from May, to end June at 260.01 points, up by 1.83 percent month-on-month.

During last month, 11 of the 14 global gaming equipment manufacturers tracked by the index reported month-on-month declines in stock price, with five down by more than 10 percent.

The Association of Gaming Equipment Manufacturers (AGEM) produces the monthly AGEM Index, in association with research firm Applied Analysis LLC. The index is computed based on the month-end stock price (adjusted for dividends and splits) of each company and weighted based on approximation of market capitalisation. It is based on a 100-point value recorded as of January 2005.

In a press release, AGEM stated that the June stock performance of several companies tracked by the index was negatively affected by the United Kingdom’s vote to leave the European Union.

“The broader stock markets reported mixed results in June 2016 largely due the recent British [vote to] exit from the European Union, which has rattled international and domestic markets,” said the association.

During June three gaming suppliers posted month-on-month stock price increases, including Australia-listed slot machine supplier Aristocrat Leisure Ltd (+7.3 percent), which contributed with about 8.25 points for the index’s overall increase.

Galaxy Gaming Inc (+19.2 percent), a manufacturer of casino table game products with shares traded in the United States, and U.S.-based Gaming Partners International Corp (+3.2 percent) each contributed with about 0.03 points for the index’s increase in June.

The AGEM Index reported a year-on-year increase for the eighth consecutive month, rising by 67.7 points, or 35.2 percent, when compared to June 2015.

AGEM is a non-profit international trade association representing manufacturers and suppliers of electronic gaming devices, systems, table games, online technology, key components, and support products and services for the gaming industry.